Guardian soars on takeover hopes

Thursday 14 February 2002 00:00 BST

INVESTORS snapped up the beaten-down stock in Guardian IT after the troubled group revealed it was in bid talks. The disclosure comes two days after it admitted to accounting discrepancies, a confession that almost halved its share price.

The firm, which provides data back-up services to deal with computer failures, said the discussions may or may not lead to an offer. 'This is one of a number of options that the board will consider in its aim to maximise value for its shareholders,' it added.

Guardian did not reveal its negotiating partner nor a likely price. But analysts have said the still profitable company could attract bigger European or US IT services players. The shares shot up as much as 32% then eased to trade up 22% or 8p at 44p. They hit 1655p in mid-2000.

On Tuesday, Guardian revealed accounting discrepancies of up to £2.5m, prompting its second profits warning in less than two months. The firm has now called in forensic accountants to look at its books.